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DoorDash, Grubhub, Uber Eats sue NYC over price caps

Food Delivery NYC
Posted at 10:20 AM, Sep 10, 2021
and last updated 2021-09-10 12:20:09-04

Three of the nation's largest food delivery companies are suing New York City over a limit on fees it put in place during the pandemic to protect restaurants devastated by the forced closure of their dining rooms.

The city has continued to extend those caps even as vaccinations allow more indoor dining, costing the companies millions of dollars over the summer, according to the lawsuit.

In the suit filed late Thursday, the U.S. District Court for the Southern District of New York, DoorDash, Grubhub, and Uber Eats call the fee caps government overreach.

According to the Associated Press, the food delivery companies said in the suit that they were “instrumental in keeping restaurants afloat and food industry workers employed” because they invested money into that businesses during the pandemic.

The AP reported that the companies filed an injunction to stop enforcement by the city on extending the fee caps, which were adopted in August.

The delivery platforms that experienced explosive growth during the pandemic are increasingly clashing with local governments who say restaurants and consumers are getting hit with exorbitant fees and high costs.

The companies are pushing for a jury trial and unspecified monetary damages, the AP reported.